What changed
FATF updated its statement on AML/CFT compliance deficiencies in certain jurisdictions on February 14, 2014. RBI is now directing UCBs to factor this updated FATF guidance into their risk assessments.
What it means for you
UCBs must stay current with FATF's evolving list of high-risk jurisdictions to avoid regulatory penalties. While legitimate transactions are not banned, enhanced due diligence may be needed for dealings with flagged countries.
What you must do
- Review the enclosed FATF statement and update your AML/CFT risk assessment accordingly.
- Ensure your Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
- Continue to monitor FATF updates for any changes in jurisdiction risk profiles.
Who it affects
All AD Category I Primary (Urban) Co-operative Banks, Principal Officers of UCBs
Does this circular ban transactions with the listed jurisdictions?
No, it explicitly states that UCBs are not precluded from legitimate trade and business transactions with those countries and jurisdictions.
What is the source of the updated AML/CFT guidance?
The Financial Action Task Force (FATF) issued the updated statement and document 'Improving Global AML/CFT Compliance: On-Going Process' on February 14, 2014.